The FDR Framework is the backbone for a 21st century financial system. Under this framework, governments ensure that every market participant has access to all the useful, relevant information in an appropriate, timely manner. Market participants have an incentive to analyze this data because they are responsible for all gains and losses.

Sunday, November 25, 2012

HSBC chairman urges bankers to swear an oath

The Telegraph reports that the HSBC chairman is urging bankers to swear an oath similar to that sworn by doctors in a bid to restore trust in banks and bankers.

Before taking the oath, every bank needs to begin providing ultra transparency and disclosing on an ongoing basis their current global asset, liability and off-balance sheet exposure details.

Ultra transparency is needed not only because this form of sunshine that is the best disinfectant, but because it is the foundation of the bankers pledge to engage in an honest, fair manner with all of their clients, customers and counter-parties.

Everyone knows that a bank and its bankers that are not willing to provide ultra transparency are hiding something and should never be trusted.

So when is HSBC going to start providing ultra transparency?

Douglas Flint, the chairman of HSBC, is pushing for bankers to take an oath similar to that sworn by doctors as part of radical plans to overhaul the way the profession is viewed in the wake of the financial crisis and successive banking scandals.

He is calling for the oath to be administered by an independent body designed to police the banking industry and is understood to have discussed the prospect with his counterparts at the UK’s other big banks....

With ultra transparency, all market participants could police the banking industry. We have already seen with the financial crisis that regulators are not up to the task.

The very same British Bankers Association that brought us the opaque mechanism for setting Libor that allowed the banks to manipulate the rate for their own profit behind a veil of opacity.

The first of eight principles sets out the need “to act honestly and fairly at all times when dealing with clients, customers and counter-parties”.

In order to abide by this first principle, the bank must provide ultra transparency. Without this information, it is impossible for clients, customers and counter-parties to know if the bank and its bankers are acting honestly and fairly.

1 comment:

Anonymous
said...

Has the air just got to thin on the 43 floor 8 Canada Square for Mr Flint?

Why is he trying to link Doctors with Bankers?The oath saysI will use treatments for the benefit of the ill in accordance with my ability and my judgment, but from what is to their harm and injustice I will keep them Well Mr Flint all you have done in India is to support Harm and Injustice.

Please go to youtube: HOW THE HSBC CHAIRMAN MR. FLINT LIED TO SHAREHOLDERS

Then ask would you trust this man, why did he and Mr Gulliver go to the Senate hearing in the USA?

Maybe they wanted Mr Flint to take an OATH?

Instead of taking a oath try telling the truth, that might be the right thing to do or is that to hard to ask?

Where is Billy liar playing these days? Michael Mason-Mahon shareholder

About this blog

A blog on all things about Wall Street, global finance and any attempt to regulate it. In short, the future of banking and the global financial system.

This blog will be used to discuss and debate issues not just for specialists, but for anyone who cares about creating good policies in these areas.

At the heart of this blog is the FDR Framework which uses 21st century information technology to combine a philosophy of disclosure with the practice of caveat emptor (buyer beware).

Under the FDR Framework, governments are responsible for ensuring that all market participants have access to all the useful, relevant information in an appropriate, timely manner. Market participants have an incentive to use this data because under caveat emptor they are responsible for all gains and losses on their investments; in short, Trust but Verify.

This blog uses the FDR Framework to explain the cause of the financial crisis and to evaluate financial reforms like the ABS Data Warehouse.